Cosmos’ mandate is to apply award-winning filmmaking techniques coupled with major talent to produce studio-quality movies for medium-sized budgets. The company focuses on strong IP properties with global appeal, with the belief that you cannot make a great movie without beginning with a great story.
In addition to creating successful international films, Cosmos has an opportunity to support China’s “One Belt One Road” initiative by producing quality movies that tell sophisticated universal stories which deepen China’s social and cultural exchanges globally. Every chosen project will go through an extensive writing, pre-visualization and development process, before a polished script is taken to the international market to be packaged.
The company plans on rounding out its production slate with two lower budget films (under $20M), at least one Chinese language film and/or TV series ($20M-$40M), two middle budget high concept cast driven genre films ($20M-$50M) and one or two larger budget potential franchise films ($50M plus) with high profile movie stars and creative attachments that support such productions.
Cosmos will partner with a US Studio and a Chinese Distribution Company for a wide theatrical release in both territories. This allows projects to be properly packaged, internationally pre-sold and debt financed, which maximizes potential upside for all equity investors. No more than thirty percent of a budget will be made up of equity.
Cosmos performs detailed financial analysis on every project. This allows a sophisticated financing plan to be implemented, which takes advantage of minimal equity outlay through leveraging a proposed domestic studio output deal, international pre-sales, tax rebates and any additional Government investments and/or incentives.
Investors will hold a proportionate share in the assets of the fund and will share in all revenue channels of the projects produced. Based on a conservative estimate from the financial analysis and modelling that has been performed on the potential projects, the projected return for investors is 2.1X, with a worse case scenario being forecast as 1.5X and a best case of 3.37X, if the fund performs above expectations.
Cosmos also wants to assist in China’s worldwide expansion in the entertainment business by continuing to provide development, production and VFX skills for the best Chinese films. In a similar manner to the Hollywood consulting work done on Wolf Warrior 2, Cosmos can provide expertise on selected Chinese productions to help increase potential box office revenue.
Additionally, as part of the company facilitating pre-production and production services, Cosmos can also manage post production and government incentives. This involves overseeing financing, budgeting, editing, sound, music, VFX, and the processing of rebates.
Successfully qualifying for and maximising rebates in Australia involves auditing, reporting and properly lodging Qualifying Australian Production Expenditure (QAPE). Effectively liaising with federal and state government representatives ensures the timely and accurate pay-out of structured rebates.